Shares of defence major Hindustan Aeronautics (HAL) gained 2.73% to Rs 4,895.70 on the NSE on Friday after US defence giant GE Aerospace said it had delivered three F404-IN20 engines to the Indian PSU in August for the Light Combat Aircraft (LCA) Tejas programme.

“GE Aerospace shipped three F404-IN20 engines to HAL in August 2026. We are proud to partner with Hindustan Aeronautics Limited (HAL) and the Indian Air Force to power India’s indigenous fighter jets,” the company said in a statement. The deliveries come as HAL continues to receive the engines after prolonged delays caused by supply constraints.

The Indian Air Force (IAF) has placed orders for 180 LCA Mk1A fighters in two tranches, while HAL currently has an annual production capacity of 24 aircraft. The IAF placed its first order with HAL in February 2021 for 83 LCA Mk1A aircraft, comprising 73 fighter variants and 10 trainers. A second order for 97 additional aircraft was placed in September last year at a cost of more than Rs 62,370 crore.

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The LCA Mk1A is an upgraded version of the Tejas fighter aircraft and forms a key part of the Indian Air Force’s efforts to replace its retired MiG-21 fleet and address declining squadron strength. The 4.5-generation, single-engine, multi-role fighter is designed to undertake air defence, ground attack and maritime strike missions.

The Mk1A features several improvements over the earlier Tejas Mk1 variant, including an Active Electronically Scanned Array (AESA) radar, an indigenous electronic warfare suite, air-to-air refuelling capability and enhanced maintenance systems. The aircraft has more than 64% indigenous content, with 67 additional Indian-origin components incorporated into the platform.

HAL shares have declined around 2% over the past week but gained nearly 3% in the past month. The stock has risen more than 8% so far in 2026.

Over the longer term, HAL shares have gained more than 7% in the past year and delivered multibagger returns of over 140% in three years and 583% in five years. The company currently has a market capitalisation of around Rs 3.19 lakh crore.

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